It's no secret that the high street has been having a hard time thanks to this whole "internet thing", which makes it possible to order in pretty much anything without having to put on pants and leave the house. Like Phones4U before it, Carphone Warehouse is having a bit of trouble getting people into its shops, though unlike the long-dead competitor it's only shutting 92 stores in response.
Dixons Carphone head office has made the decision to close down the 92 standalone shops later this year, pinning the blame on changing consumer habits. Apparently people are much happier keeping their phones longer, rather than religiously buying the new model every six months, and have an increased tendency to go for SIM free devices rather than contracts.
Dixons Carphone hasn't had a great time lately, not only has share value dropped by 30 per cent over the past year, a further 20 per cent of their value was lost after the company announced profits would fall below analyst forecasts. They had expected the company to earn £387 million profit, but the actual figure is closer to £300 million.
So far it isn't clear which branches will be closing down, and when, but Dixons Carphone has confirmed that there won't be any job losses. Staff from the affected branches will be offered positions elsewhere.
Chief Executive Alex Baldock said:
“Right now, with our international business in good shape, we’re focusing early action on the UK.
In electricals, we’re focused on gross margin recovery. In mobile, we’re stabilising our performance through improvements to our proposition and network agreements.
In both, we’ll work hard to improve our cost efficiency. We won’t tolerate our current performance in mobile, or as a group. We know we can do a lot better.”